two-month extension, house republicans are now saying they're not on board. nbc's tracie potts joins us from washington with more on that. tracy, good morning. >> lynn, good morning. house republicans led by speaker john boehner say they don't want a two-month extension, they want a full year extension and they'll vote down that temporary extension later today. this after 89 senate democrats and republicans compromised, voted on the two-month extension and then left town. even senate republicans are urging their fellow republicans in the house to do so today, but it looks like that measure may be the rejected. bottom line, your payroll tax cut, as of january 1st, still very much up in the air. what happens from now? a couple of things. first of all, if they vote on something different, the senate may have to come back and approve or disapprove that. or they might be able to work this out in conference. what the senate passed includes that controversial keystone xl oil pipeline. democrats gave in at the last minute to get this extension done, but the white house says it doesn't force

warned a lapse in the tax break could be a, quote, serious blow to the economy. nbc's tracie potts joins us from washington with all the details. good morning. >> reporter: lynn, good morning. you may not be aware, but you got an extra $1,000 this year if you're working. payroll taxes went down by 2% but that runs out december 31st if congress doesn't act, you'll be paying that money starting in january. at a rally if scranton, pennsylvania, yesterday, president obama said this could cause a massive blow to the economy, allowing this payroll tax cut to go into effect again. he wants to pay for it. democrats want to pay for it with a 3% permanent tax on millionaires but republicans won't go for that at all. they say it's punishing the job creators. their new plan to freeze federal pay through 2015, cut 200,000 federal jobs and raise medicare premiums on the rich, also making sure millionaires don't get food stamps and unemployment. looks like it's going to be another year-end showdown over taxes. >> tracie potts for us in washington, thank you. >>> elsewhere, a new accuser in the penn sta

holidays until both sides agree on payroll tax cuts. nbc's tracie potts joins us from washington on this. good morning. >> reporter: good morning. a couple of issues going on here. the budget and the payroll tax cuts. it looks like congress may have a solution to that can they've been kicking down the road month after month. health education among departments unfunded permanently. now it looks like they've worked out the details. aides say there are minor details to continue to work out but it looks like that will happen before the end of the month. now, the payroll tax cut. republicans take a vote in the house today and they expect to tie that to that controversial keystone pipeline. there have been protests over environmental issues with the pipeline. the white house had put off that decision until over a year from now. the senate will reject this, we are told. president obama has all but said he'll reject any attempt to tie this payroll tax cut extension to the pipeline. the tax cut extension would save the average american $1,000 a year. today's vote would also cut unemployment

government shutdown. nbc's tracie potts joins us from washington with the details on that and a massive defense bill headed to the president's desk. good morning. >> reporter: lynn, good morning. good morning, everyone. here's how they were able to work that budget deal out. democrats agreed to delay some energy efficiency rules that were due to kick in soon. and republicans dropped their restrictions on people spending money and making visits from this country to cuba. those were two big sticking points. as a result, it looks like we'll be able to fund the government through next september. now, included in this senate majority leader harry reid says may be a plan "b" to extend payroll tax cut for two months as well as unemployment benefits and medicare payments as well. without it, doctors are looking at a 27% cut. this would fund ten departments, most of them would be reduced as a result of last summer's deal. the house and the senate expected to approve this today. also now headed to the president's desk, a $662 billion defense bill for president obama's signature. it would

. nbc's tracie potts joins us with more on this. good morning. >> reporter: lynn, good morning. the president, the administration had actually decided to put off a decision on the controversial keystone xl pipeline until after the election, but republicans now say they want it approved now because it can create tens of thousands of jobs. the $7 billion pipeline would run through middle america at a cost of, as i said, $7 billion. but there are environmental concerns. and there have been protests over those concerns, greenhouse gas emissions, possible oil spills. republicans say we could be looking at up to 138,000 new jobs. but the president with the prime minister of canada yesterday, told congress, be on notice, i will reject any effort to link this pipeline to the payroll tax cut extension currently here in congress. republicans are concerned that it could break social security. lynn? >> tracie potts for us in washington, thank you. >>> well, former penn state football assistant coach jerry sandusky was arrested wednesday on new charges of alleged sexual child abuse. a lawyer for

afghanistan are winding down. president obama has threatened a veto. lynn? >> tracie potts in washington, thank you. >>> elsewhere as herman cain weighs his white house aspiration, the he said/she said continues between gop presidential candidate and an atlanta businesswoman who claims she was his mistress in more than a decade. in a newspaper interview cain admitted to providing ginger white for monthly aid for monthly bills and expenses after she asked for help. cain never told his wife, recounting what he called a platonic relationship. in an exclusive interview on msnbc's "last word" white told a different story to lawrence o'donnell. >> did herman cain tell you he loved you? >> never. nor did i tell him that i loved him. it wasn't a love affair. it was a sexual affair. as hard as that is for me to say and as hard as it is for people to hear it, you know, it pretty much is what it is. that's what it was. >> herman cain says he will make a decision on the future of his campaign before monday, after a face-to-face discussion with his wife. >>> meanwhile, this year's santa ana winds are

cuts could result in a government shutdown. tracie potts joins us with more. >> reporter: good morning. lots going on. let's start with your check on that payroll tax cut. negotiations in earnest, president obama and democrats, it appears, will abandon their push for a millionaire tax in an attempt to get republicans to abandon that controversial oil pipeline they've attached to this package. when it comes to the possible government shutdown as of midnight tomorrow, a new $1 trillion package introduced very late last night by house republicans that would keep the government running includes spending cuts and backs off policies that conservative republicans wanted. top democrats are on board but the white house still has concerns and they're pushing a short-term measure. another short-term measure. finally, some progress on a massive defense bill. the house has passed a $662 billion package. looks like the senate will vote on that later today. there was a concern about terror detainees, whether they would be tried in civilian courts. now it looks like they've been able to work t

, but democrats in the senate are already threatening its survival. nbc's tracie potts has more now today from capitol hill. tracie, good morning to you. >> >> reporter: hi, eun. good morning, everyone. today we'll have a report on the republican plan that not only funds this differently than democrats want but also attacks on something president obama said he didn't want, that controversial keystone oil pipe lynn expected to run through the center of this country. it has been the subject of protests. president obama has said, don't link the two issues. i will reject that. that is exactly what is expected to happen in that house vote today. $180 billion to pay for the payroll tax extension so that the deductions from your paycheck remains low thnext yea as it was this year as part of the bargain to keep that low. but what's passing the house today is likely not to pass the senate, and the president says he will reject it. so somewhat back at square one. they've still got to work it out by the end of the year. the other thing they have worked out is the budget. they kept kicking the

will avoid a government shutdown. tracie potts reporting from capitol hill. >> reporter: first of all, it looks like congress has avoided the midnight shutdown, and your paycheck may be safe, at least for now. republicans came up with a $1 trillion spending plan. democrats have signed on to it, and the way they were able to do that, democrats agreed to delay energy efficiency rules. republicans dropped their restrictions on money and vitts going to cuba. a couple of issues that hung it up. we'll see votes on a package that will avoid the shutdown and extend the all important payroll cuts through two months. so we may be revisiting this before march. and jobless benefits would be extended for two months as well. plus the medicare payments for doctors that were supposed to be cut 27% at the beginning of the year, looks like those will be preserved as well. at least temporarily for two months until congress can get back to this after the holidays. >> tracie potts reporting live from capitol hill. >>> today the man accused of leaking classified information about the wars in afghanistan an

. that's when your payroll taxes will go up 2%. nbc's tracie potts, as the story on capitol hill. >> keep your word to the american people and don't raise taxes on them now, and now is not the time to slam on the brakes but to slam on the gas. >> reporter: it's the same place roosevelt delivered his square deals street. president obama is pushing for congress to extend the payroll tax cut. on monday, democrats unveiled their plan to pay for it. no payroll tax break for business. and no unemployment or food stamps for millionaires. republican leaders signaled compromise. >> that's a sign that ultimately they will be able to get majorities in both chambers to go along with what the president wants. >> some oppose the millionaire tax. >> it's bad economic policy and bad tax policy and certainly the surtax that would sunday this would hurt small business and job creation. republicans want to pay by this by freezing pay and raising costs for pension for federal workers. tracie potts, nbc news, washington. >>> now, another new poll indicates newt gingrich is now the clear frontrunner i

. president obama, though, is vowing to veto any such plan. nbc's tracie potts is live on capitol hill now with more. good rng month. >> reporter: good morning. we're talking about that 2% you got off your payroll taxes, your social security taxes this past year, trying to extend that into next year. now, republicans want to link the approval of this controversial oil pile line that would run almost 2,000 miles through the middle of america. environmentalists have expressed concerns about possible leaks, about white house gas emissions. the administration had put off dealing with this until after the election, but now republicans say this could create jobs. 20,000 much needed construction jobs as well as over 100,000 other related jobs. so they want to see an approval sooner, possibly within 60 days, and they're trying to link it to the current debate over the payroll tax cuts. yesterday with the prime minister of canada, president obama said be on notice. i will not approve any payroll tax cut extension that includes these extra issues, including the oil pipeline. as he put it, congress s

indications his son kim jong eun will succeed his father. tracie potts is live on capitol hill with more on kim jong-il's death and what is next for that country. tracie? >> reporter: good morning. his youngest son who is in his 20s is listed as the lead of the commission, the funeral commission, which seems to indicate he may take over. he has certainly been groomed for it. kim jong-il died on saturday, we believe of a heart attack. great mental and physical strain confirmed by an autopsy. the biggest concern is security. what happens with south korea, what happens with stability in that region. overnight at midnight, president obama was on the phone with south korean president lee reaffirming a commitment, the white house says, to our ally and stability in the region. there were decisions to be made in the u.s. this week on food aid and talks about north korea's nuclear program. those very likely, we're told by the administration, will be put off. our national security teams in touch with south korea are now on high alert, watching very carefully, the 1.2 million person army just to the n

the air as every. nbc's tracie potts is live on capitol hill with details. tracie, good morning. >> reporter: up in the air, but take a look at the latest nbc marist poll for iowa. newt gingrich with a strong lead at 26%. mitt romney at 18%. ron paul, who's moved up in it iowa and nationwide at 17%. a virtual tie in third place, but a virtual tie with mitt romney. the big question this morning, after the weekend, and herman cain dropping out of this race, is who will get cain's endorsement. we're hearing it could be newt gingrich as early as today. the cain camp has denied that. all of the candidates, or many of the major candidates, are trying to get an audience with cain, trying to set up a meeting with him to get that endorsement. michele bachmann, who's way down in the bottom tier, thinks they she may pick up a lot of cain supporters because of the tea party vote. even rick an storantorum, who o has 6% in iowa, thinks he can still win. rick perry put out a statement, saying, i'm now the only washington outsider still in this race. >> tracie potts live on capitol hill for us

a smaller sure tax on the wealthy. nbc's tracie potts joins us from washington with more. >> reporter: good morning. the president is hoping to put the pressure on at a small town in kansas, the same place president roosevelt delivered his popular square deal speech, protecting the middle class. the president spoke at the white house yesterday, saying republicans should not raise taxes on the middle class. but this payroll tax cut extension and the unemployment benefit extension he wants is going to cost $180 billion. yesterday a senate majority leader harry reid unveiled how democrats want to pay for that. no payroll tax cuts for businesses, fees on mortgages from fannie mae and freddie mac and they're scaling back the millionaire tax to 1.9%. some republican leaders are signaling compromise, but other members still have an issue with that millionaire tax. we'll watch this situation because that payroll tax cut extension expires at the end of the month. >> thank you. >>> overseas now where thousands took to the street in moe moscow protesting what they called a rigged vo

political past and energizing mitt romney's fight to regain support. nbc's tracie potts joins us from washington with more. good morning. >> reporter: lynn, good morning. good morning, everyone. newt gingrich is leading by double digits in several major polls, and that is bringing him a lot more attention and criticism from his opponents. michele bachmann questioning his conservativism. the new attack ad from ron paul talks about the $1.6 million he earn as a consultant for freddie mac saying it's the essence of a washington insider. gingrich on cnbc says he is the only speaker to balance the budget. mitt romney hoping to get back in front-runner status, tied in some polls with ron paul, has a key endoerment from dan quayle and romney says he has time in what washgs he'll iowa and will campaigning aggressively there. >>> the obama administration has taken a significant step in protecting the rights of gay, lesbian and transgendered community around the world. on orders from president obama secretary of state hillary clinton told a conference in geneva that the u.s. will use foreign ai

for the holidays. that as the january 1st deadline draws closer. tracie potts is live on capitol hill with more on this right now. good morning, tracie. >> reporter: hey, joe. good morning, everyone. not a lot of hope they'll get this done at least this week. we've seen another mass exodus. this time members of the house, some republicans who are just literally throwing up their hands, giving up, and going home for the holiday. republicans trying to force negotiations to come up with a one-year deal, something they tried before. it didn't work. house speaker john boehner asking for the president's help. the president telling boehner they need to approve the 60-day extension that the senate approved before they left. one law maker said this is like a high stakes poker game. >> it's not a game for the average family who doesn't have an extra $1,000 to lose. >> i need the president to help out. >> reporter: the president is saying republicans will probably end up backing down and not looking too good in the end. we don't know. this is still a fluid situation, and, of course, in the

opponents. nbc's tracie potts is live on capitol hill with what the other candidates are saying about him now. good morning, tracie. >> reporter: hey, joe, good morning, everyone. he's got a double digit lead in several major polls. the media is talking about his background. some candidates like michele bachmann questioning whether he is conservative enough. by far, the toughest attack yet has come in a new ad in iowa birby ron paul. here's part of that ad. >> let's look at the politicians who create the environment. the politicians who profit from the environment. >> they're taking $1.5 million. >> after he left congress, freddie mac paid gingrich $1.6 million. >> $1.6 million, some of it just before the housing market collapses. >> reporter: later in that ad, paul says he's the very essence of a washington insider, accusing him of, quote, serial hypocrisy. gingrich says ron paul isn't doing too well. he had to say something. he focused on a cnbc interview last night saying his record is he's the only house speaker in our lifetime that has balanced the budget. that should serve him w

that extended the tax break for two months. nbc's tracie potts is here with more on what lies ahead. >> angie, good morning. good morning, everyone. >> reporter: one democrat says it's the weirdest thing he's ever seen. 83% of republicans before they left town on the senate side supported this two-month extension. they couldn't come to a longer term agreement. so they agreed on a two-month extension. but their colleagues in the house won't even bring it to the floor for a vote, we learned late last night. initially, they said they were going to reject it. now not even bringing it up for a vote. instead, what they did last night was vote to hold a conference, a few democrats, a few republicans, from both sides, some of whom would have to come back from vacation to try to work out what they want, which is a full one-year extension, which is ironic because just a few months ago republican leaders were against extending this payroll tax cut at all. nancy pelosi on the house side, harry reid, democrat on the senate side, both say they're not sending anyone to this conference. now you've

the worst possible time, just 22 days before the iowa caucuses. nbc's tracie potts is live on capitol hill now with details on the latest polls. tracie, good morning. >> reporter: hi, eun. good morning. let's start with gingrich because he is the front-runner even more so than now. a new nbc news poll shows him widening his already large lead in key battle ground states. in florida, he's got 44% support up from just single digits just a couple of months ago. similar in south carolina, 42% support there. moving up from single digits just a couple of months ago. we saw in saturday's debate and on the sunday talk shows the other candidates going after him, both his views and personally. gingrich fighting right back. in fact, in terms of his maiages, personally saying he is asking god for forgiveness, and people will have to render judgment on that. now let's talk about mitt romney. here's that $10,000 comment he made over the weekend. >> rick, i'll tell you what. 10,000 bucks? $10,000 bet? >> i'm not in the betting business. >> ann came up and gave me a kiss and said i was great.